SDB expects to drill wells in Blocks A, Q

National 1 minute, 55 seconds

BANDAR SERI BEGAWAN

SHELL Deepwater Borneo Limited (SDB) is expected to drill exploration wells in Blocks A and Q in 2016, its managing director said.

Stuart Goodman told The Brunei Times that it acquired seismic data in Block A last year, and Block Q two months ago.

Blocks A and Q have previously been worked over, but Goodman said both blocks provide significant potential economic opportunities.

The managing director said SDB will deploy the latest technology to make them economically viable.

He explained that deepwater exploration provides huge potential opportunities in Brunei, but also involves higher costs and carries a higher risk of failure than well-developed acreage that have completed wells capable of producing commercial quantities of oil or gas.

“The challenges we see are utilisation of new technologies to make those developments economically viable for our deepwater exploration and production,” he said.

Goodman said the output of production from these blocks would support domestic oil demand, as well as for export.

He added that the gas would be supplied to BLNG, and potentially meet domestic industrial demand.

“As far as Block A and Block Q is concerned, what is in it for both Brunei and Shell is that there are great opportunities from the standpoint of developing Brunei capabilities,’’ he said.

The managing director said there are great opportunities for young Bruneian talent to experience and be able to work on these types of developments.

“We are working very actively with the regulators to try and unlock hydrocarbon resources that previously have not been developed,” Goodman said.

SDB is a 100 per cent Shell company and was formed in 2001 as a result of Dutch Shell’s acquisition of New Zealand-based Fletcher Challenge Energy that included assets in Brunei.

Goodman added that Shell has a long-valued partnership of 85 years in Brunei, and it wants to continue its growth in Brunei.

“When you look as far as SDB (forming) in 2001 with Fletcher Challenge Energy Acquisition, we have increased our acreage position eight-fold. So we want to continue to build that position and complement the position we already have in BSP,” he said.

SDB’s portfolio includes exploration and development activities in five assets – Block A and Block B, and has added three more offshore licences in CA2 in 2001, Block N in 2013 and Block Q in 2013.

The Brunei Times